What lenders actually look at.
- Rental income vs. mortgage payment
Most lenders want rental income to cover 125–145% of the mortgage at a stress-tested rate (usually 5.5–7%). The numbers need to work conservatively, not optimistically.
- Your personal income
Most lenders still want to see you could service the mortgage if rental income dried up. Minimum income thresholds almost always apply.
- Property type and location
Standard buy to let is one thing. HMOs, holiday lets, flats above shops — each has different lenders and different criteria.
- Your overall portfolio
Four or more properties triggers portfolio landlord status at most lenders, meaning more detailed stress-testing across your entire portfolio — not just the new property.
Structure matters more than most people realise.
Personal name vs. limited company. Section 24 restricts the mortgage interest tax relief individual landlords can claim — you now receive only a 20% basic rate tax credit rather than deducting interest in full. Limited companies can still deduct mortgage interest as a business expense, which is why most serious portfolio landlords now buy through a limited company. We'll discuss what makes sense for your situation.
Regulated vs. unregulated. Most buy to let mortgages are unregulated business transactions. The exception is Consumer Buy to Let — if you're letting to an immediate family member, or inherited a property, different rules apply. We'll confirm which category you're in.
Specialist buy to let we handle
HMOs — Higher yields, higher complexity. Specialist lenders only, with deposits typically 25% or more.
Holiday lets — From April 2025 the Furnished Holiday Let tax regime was abolished. Holiday lets now face the same Section 24 restrictions as standard buy to let. The specialist mortgage market remains, but the tax picture has changed significantly.
Limited company buy to let — Slightly higher rates typically, but full mortgage interest deductibility against corporation tax makes it the preferred post-Section 24 structure for most portfolio investors.
Your property may be repossessed if you do not keep up repayments on your mortgage.